With oil at $40 a barrel, windmills and solar panels are getting a second look

IT USED TO BE A QUAINT DREAM of the granola and Birkenstock crowd: widespread use of windmills and solar panels to generate electricity. But now, lured by the potential profits, some big corporations are starting to plow billions into the field. Giants such as General Electric and Royal Dutch/Shell Group have jumped into the manufacturing end of the business, while wind farms are finding equity financing from the likes of FPL Energy, a unit of Florida’s FPL Group; PPM Energy, a unit of Scottish Power; and the Zilkha family of Texas, which made a fortune in natural gas in the 1990s.read more

ROYAL Dutch/Shell Group has reduced its annual earnings by $US203 million ($285 million).

This was revealed in an annual report delayed by two months due to the scandal arising from the company’s downgrading of its oil and gas reserves. Yet even as it sought to restore its battered reputation, Shell suffered another blow when a US refinery said it had supplied Shell stations in the US state of Florida with petrol that contained potentially damaging amounts of sulphur.read more

The oil industry is still essentially run by geologists, so Shell’s executives will have a ready analogy for the periodic tremors the seismic upheaval of Shell’s 3.9bn barrel reserves downgrade in January is still throwing out. Last week’s 120m barrel downgrade, Shell’s fourth this year, barely registered however.

The cut pushed Shell’s total reduction in proven reserves to a new total of 4.47bn barrels, and it was forced to trim earnings for 2001-03 by $402m. Shell Transport’s shares rose 2%. What really held up the share price was belief that Shell’s auditors, KPMG and Pricewaterhouse-Coopers, had decided to give the annual report a clean bill of health.read more

The Business: Shell UK bosses join push for single board

DIRECTORS of Shell Transport and Trading, the British side Anglo-Dutch oil giant Royal-Dutch-Shell, have swung behind investors pushing for the company to unify its two boards.

A UK fund manager involved in meetings with directors on corporate government told The Business: “I’ve spoken to most of the Shell Transport board and they are very much in favour of changing the structure.”

British directors favour moving towards a unified structure, he said, but most would rather do so by appointing the same boards of Shell Transport and Trading and Royal Dutch. This would avoid the expense and legal headaches of unifying the UK and Dutch holding companies into a single listed firm. read more

The Wall Street Journal: Hostages Are Released After Saudi Crisis Ends

Associated Press

May 30, 2004 3:44 a.m.

Saudi Arabia — Saudi authorities freed American, European and other foreign hostages Sunday after a shooting rampage turned into a daylong standoff, and a Saudi security official said the lead attacker was in custody and two other suspected Islamic militants were being arrested.

The Saudi security official wouldn’t comment on the whereabouts or conditions of the hostages, saying only: “It has ended. One has been arrested and two are in the process of being arrested — they are surrounded.” With reports of up to seven gunmen, it wasn’t clear if some of the gunmen had been killed.read more

Leading shareholders in Anglo-Dutch company Shell are threatening to vote against the chairman, Jeroen van der Veer, at its Dutch annual shareholder meeting next month.

Under Dutch listing rules, companies must ask shareholders to vote to “discharge directors of their responsibility” for their actions in order to approve its annual report.

Shell sent Royal Dutch shareholders the agenda last week for its annual general meeting. One prominent investor said he was considering not approving this motion as a protest against the board. Some senior Shell executives, especially Mr van der Veer, did not appear committed to significant reform, he said. It follows the scandal over Shell’s misreporting of its oil and gas reserves, prompting investigations by the US Securities and Exchange Commission and the UK Financial Services Authority.read more

The Times: The Andrew Davidson Interview: Life’s a gas for BG supreme

30 May 04

Frank Chapman is the man his rivals would like to poach. But the man who loves sailing says he has already plotted a course for the next nine years

SIZE, says Frank Chapman, looking as lean and sleek as a greyhound, is not important. Well, you could have fooled me. For a boss whose business is sprinting ahead right now, you would think size is one of the mission aims carved above the firm’s front door.

For one thing, doesn’t size make you less likely to be taken over by someone bigger? “Well, maybe,” grins Chapman, “but it’s not something I spend a lot of time thinking about.” read more

The Observer: Don’t vote before you read this

Sunday May 30, 2004

Heather Connon hears fighting talk from bosses of two very pugnacious shareholder activists

‘Vote often, vote early and vote on an informed basis’ is a motto that Sarah Wilson hopes will become universally accepted. Wilson is founder and managing director of Manifest, the corporate governance and proxy voting agency, which aims to help institutional investors do just that.

Its team of 26 employees produces reports analysing the resolutions put forward at the annual meetings of every British company, highlighting where they do not comply with best practice, comparing salary and bonus levels with averages for the industry and the market as a whole, calculating what that complicated incentive scheme could mean in pounds and pence. When its clients have digested this and decided how to vote, Manifest then ticks the appropriate box – or, more frequently, presses the appropriate button – on their behalf. read more

The Observer: Shell’s ground zero

Sunday May 30, 2004

The reserves scandal has left the Anglo-Dutch oil giant a long way behind its rivals. Dogged by difficulties in Nigeria and elsewhere, can it ever catch up, asks Oliver Morgan

On Friday morning there were loud thumps across the City as oil giant Shell’s hefty annual report finally landed on desks. The long-awaited document, delayed thanks to the internal turmoil caused by four downgrades that have stripped 4.7 billion barrels of oil from the company’s proved reserves, was an attempt to ‘fess up and move on.read more

The Observer: Saudi horror sparks fears of oil crisis

· Militants hold 50 hostages · £4 gallon looms as battle rages

Nick Mathiason and Mark Townsend

Sunday May 30, 2004

Oil prices are set to surge after al-Qaeda gunmen killed at least 16 people, including a Briton, and seized 50 hostages yesterday during an indiscriminate rampage through the Saudi Arabian city of Khobar.

In a day that left the oil city, in the east of the country, littered with bodies and bullet-riddled buildings and cars, the terrorists attacked four compounds housing foreign workers, seized American and Italian hostages and fought running battles through the streets. read more

The Scotsman: Shell

Posted 30 May 04

THE oil industry is still essentially run by geologists, so Shell’s executives will have a ready analogy for the periodic tremors the seismic upheaval of Shell’s 3.9 billion barrel reserves downgrade in January is still throwing out.

The cut pushed Shell’s total reduction in proven reserves to a new total of 4.47 billion barrels, and the company was forced to trim earnings between 2001-2003 by $402m. Shell Transport’s shares rose 2%. read more

Sometimes a selection of keynote speakers for a high-profile conference is all luck.

Former Securities and Exchange Commission Chairman Arthur Levitt kicked off accounting firm KPMG’s annual energy conference last week in Houston with a message similar to the event’s 2003 keynote speaker: Restoration of investor trust and attention to integrity are key in the post-Enron corporate world.

Then Levitt noted the 2003 speaker was Philip Watts, former chairman of Royal Dutch/Shell Group, who resigned under fire last March in the wake of shareholder anger over the company’s overstatement of oil and gas reserves. On Monday the company downgraded the size of its proven oil and gas reserves for the fourth time this year as the oil giant continued to struggle with the scandal.read more

The Sun Herald: Shell shuts pumps in parts of South

Shell stations on the Coast were not affected by the problem at the Norco refinery because the gas they sell comes from the Mobile area.

Tom Russell, owner of Russell’s Service Center on Scenic Drive in Pass Christian, said a number of customers asked him about the problem. “Ours comes out of Mobile,” he said. “This is different gas altogether. I doubt if anybody in this part of the country picks up in Norco anymore.”read more

Arizona Republic: Shell reduces earnings for ’03 by $203 million

Associated Press

May. 29, 2004 12:00 AM

LONDON – The Royal Dutch/Shell Group of Cos. on Friday reduced its 2003 earnings by $203 million in an annual report delayed by two months due to a scandal involving the downgrading of its oil and gas reserves.

Even as it sought to restore its reputation, Shell suffered another blow when a U.S. refinery said it had supplied Shell gas stations in parts of Louisiana and Florida with gasoline with potentially damaging amounts of sulfur.

Shell’s revised net income for 2003 was $12.50 billion, compared with the original $12.70 billion that it announced in February, before the full extent of its reserves problems emerged.read more

SHELL BLOG

Comments

Bogus Group: Further to my post on this blog, 28 August'17, there may be some interest an an article in yesterday's Upstream "Trial set for clash of LNG players".

TotallyHackedOff: Shell - as I am sure with many global super majors- is heavy with narcissists at all levels. Lots of people like Trump rollicking around- get in their way and you’re a gonner! See you later Rexy baby!

TotallyHackedOff: In reply to Bonus Group and Another Concerned Employee- its clear reading from your posts that Shell and BG shared many business cultural similarities making the tie-up an obvious one. I know of a few Shell employees who resigned, joined BG and are now back at Shell again- it stinks of a plant/trojan horse ending! It is well known that Shell has an 'inner circle' and if you find yourself outside that as many of the technical folk do, you don't stand a chance. Its all a bit wink, wink nudge, nudge. I even remember one manager (now a VP of something) telling me how I needed to 'read between the lines' which made me think it was all a load of bollocks and how the politically adept arse kissers rose through the ranks blissfully unaware of how their actions impacted their colleagues. The alpha men and women were all the same- keen to get ahead at anyones expense and doing secret backroom deals. Its one ginormous playground and the bullies will win as they are keeping the other bullies in place.

Bonus Group: 'Another Concerned Employee'talks about Shell's 'scooby-doo' business priciples, BG's were just as opaque. If you asked someone in HR about policy you would be deflected to 'The Portal' and left to fend for yourself. Often the policies conflicted with each other and had no foundation in law. This was reflected in the hypocritical management 'do as I say, not as I do' policy.
The closest experience most of BG Senior Management had of oil rigs and platforms was reading about them in comic books. The Brasil Asset was a complete shambles with its 'Simple Simon' approach to geoscience and cappuccino lifestyle. Unfortunately, most of these overpaid sociopaths migrated to Shell and are waiting, mouth's open for their next bonus. Shell must be trying hard to find ways to cover up grotesque errors in reserves booked by this Asset. Hopefully, Shell's assurance process is better than BG's with its £2Bn failure.

Yet Another Concerned Employee: Carillion, for whom the bell tolls! Remarkable that a Shell Executive should have a finger in this pie with its aggressive auditing practices. More 'pulling the wool' over the shareholder's eyes. Were the auditors asleep at the wheel when this was happening? There should be a full investigation, and those responsible made accountable. Perhaps, sunny Brunei is a safe haven? I wonder what the extradition treaties between the UK and Brunei are?

Another Concerned Employee: Shell HR finds it easy to overlook its fake scooby doo business principles whenever it suits them. A number of staff implicit in OPL and the spin doctors trying desperately to cover up the crisis are still on payroll. It won't surprise anyone that Ceri was one of Brinded's loyal lapdogs during his dictatorship. Also no surprise she landed such a sweet job in Brunei.

Concerned Employee: Not sure if you know but..
Cerie Powell - ex EVP exploration now MD Brunei Shell Petroleum was a non exec director of Carillion (now in liquidation). She resigned once she was demoted to Brunei in 2016 (?) but given the news around the legacy issues involving Carillion, should she really hold a senior position in Shell Group ?

Bonus Group: It is understandable that a niche now exists in the market for a company similar to BG Group, but for Neptune Energy to set its aim at emulating and becoming like BG is nothing short of horrifying. Why anyone should wish to recreate the inept management, twisted HR policies and rancid technical half truths of BG Group in order to deceive the shareholders is beyond comprehension. If they do, then the Serious Fraud Office should be on the alert. Sammy 'two pools', whose past remit included selling Enterprise Oil to Shell, rather than ENI is made of sterner stuff. That said, his nuclear ambitions did fall somewhat short of those of Kim Yong Un. Let's wish Neptune Energy a long, scandal free future and greater integrity than bungling BG with its House of Cards and flamboyant ineptitude.

Bogus Group: Following the acquisition of Engie the Financial Times headline “Neptune Energy sets aim on being the next BG Group” may have sent a chill through some. To think there could possibly be a rise from the ashes is an alarming prospect
However there was some comfort in the company chairman statement “We have the opportunity to take the time to get it right”.
Hopefully this means their Ethics and Compliance foundation will actually be more than just another policy open to distortion by misconduct.

Bill Campbell: Is the New York City case against Oil Companies justifiable or just hot air?

Many, if not all prestigious US scientific journals estimate largest source of air pollution in US is caused by vehicle emissions. Current estimates that US has some 260 million automobiles and 11 million trucks. It is the daily emissions from these vehicles that are the cause of scientific concern. But anybody visiting Florida, and following a construction truck, will be familiar with black smoke in copious amounts emitting from the vertical exhaust pipe, sometimes it's so bad it can restrict your vision but Florida is not the only state of the US that does not require emission control, there are many more, monitoring for example (like a UK vehicle MOT) is not legally required or carried out.

So perhaps De Blasio should start suing these delinquent states.

In any case, I find the whole matter ludicrous in a country, where their President claims that human activity is not related in any way to global warming and appoints a head of EPA who is also so inclined (a man described by NY Times as an arsonist in the Fire Station) so why does Shell et all not call as witnesses in their defence the current EPA Director, or otherwise why does De Blasio not start by suing those states that allow millions of vehicles to pollute the atmosphere daily.
Bill

Bonus Group: Further to my last post on this blog. Sound Energy have now arranged a slap-up bean feast for their shareholders to be held on 15th February at Grace Hall, Leadenhall Street, London. Drinks at Carriages afterwards. Dress is formal so don't expect too energetic a food fight. Attendees must pay for their own tickets! All will be revealed about the new Coro strategy. You may recall that Sound shareholders will receive Coro shares as a result of the divestment of Sound's Italian assets. The question is whether Sound shareholders will end up in the soup.

Bonus Group: There are rumblings in the ether about Rockhopper Exploration plc having failed to perform Due Diligence with integrity in respect of their purchase of the Italian focused company Mediterranean Oil and Gas (MOG) in 2014, and in particular MOG's asset, the Ombrina Mare oil field.
Following the decision in February 2016 by the Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field, the company has considered its legal options with regard to obtaining damages and compensation from the Republic of Italy for breaching the Energy Charter Treaty (ECT).
Could this have anything to do with the sudden and unexpected departure of Rockhopper's Chief Operating Officer, one 'Good Time' Fiona MacAuley? Fiona, a Chartered Geologist, started her career with Mobil North Sea Limited in 1985 and has subsequently held key roles in a number of leading oil and gas firms across large mid and small cap E&Ps including BG and Hess.
Fiona is now Chief Executive Officer of Echo Energy plc where Stephen Whyte (also ex BG) is a Non-Executive Director, previously having been Chairman of Sound Energy. Fiona will also become a Non-Executive Director of Saffron Energy plc. It is proposed that Saffron acquires Sound Energy's portfolio of Italian interests and permits through the acquisition by Saffron of Sound Energy Holdings Italy Limited (SEHIL). SEHIL holds all of Sound Energy's Italian oil and gas interests through its own wholly owned subsidiary, Apennine Energy SpA (APN). It is proposed that Saffron will be renamed Coro Energy plc.
This is yet another 'reverse takeover' by the Sound Energy/Echo Energy Team. The share options for the directors are raining on them like confetti. Could there be bonuses in store for the Directors of this association of companies where the paint is never allowed to dry?
Plenty of 'smoke and mirrors' and wool being pulled over the shareholders' eyes in this can of worms.

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